In brush holders employed in electrical motors and generators it is useful for certain purposes to provide electrical connection to the brush via a terminal clip external to the holder and outside of the motor or generator housing. Such external connection is useful in providing an economical and direct electrical connection to the brush itself, rather than indirectly by way of the holder. Such external connection also eliminates internal wiring within the motor or generator housing to the brush. In a known brush assembly, the brush holder includes a body of electrically insulative material having a head portion containing a threaded recess adapted to receive a cap threaded therein for retention of the brush within a conductive sleeve disposed along the length of the holder body. The head includes a slot downwardly extending to the bottom of the head to accommodate the terminal clip of the brush. However, the provision of the slot results in a significant portion of the threaded head being absent; therefore, the head portion is relatively fragile and subject to breakage such as by striking or by driving the cap too tightly into the head. In order to enhance the strength of a conventional brush holder containing a slotted head for receipt of an external terminal clip, higher strength material must be employed in fabrication of the brush holder and resulting in a more expensive item.